In China, Many See an Increase in Value of Loyalty Programs - eMarketer

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In China, Many See an Increase in Value of Loyalty Programs

Nearly nine in 10 affluent internet users in China also believe loyalty programs encourage higher spending

June 3, 2016

Nearly nine in 10 affluent internet users in China say loyalty programs encourage them to spend more, according to January 2016 research by Survey Sampling International for Collinson Group. But that doesn’t mean affluents believe programs are costing them money: 34% also believe that loyalty programs have increased in value over the past year.

Affluent internet users in China—those in the top 10% of 15% of earners—are more likely to feel that loyalty programs have increased in value than their counterparts in either Hong Kong or Singapore. In fact, those in China are more likely to reward companies toward which they feel loyal in general.

Three-quarters of those surveyed in China, for example, say they will make a purchase from such a company in the future—higher than Singapore or Hong Kong, as the pattern goes. And three quarters of affluent internet users there also say they’ll recommend the companies in question to friends and family, which is, again, higher than their counterparts in the other markets studied.

But the biggest discrepancies come with regard to affluent internet users going out of their way to conduct business with a company toward which they feel loyal. About three-quarters (73%) in China say they will, while just 36% of those in Singapore and 30% in Hong Kong feel the same way.

However, one reason for company loyalty is common across the region: good service across all customer touchpoints.

With affluent internet users in China more enthusiastic about loyalty programs—and thus more likely to remain loyal to a company itself—it’s certainly worth companies in Singapore and Hong Kong examining their own loyalty programs, and seeing how they can convince users of their value.

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